St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-01-06

! rates charged for transportation Of freight
and passengers. II upon complaint, or other
wise, it shall appear to the commission, after
careful investigation that such rates are In
any respect unequal, unjust or unreason-
able" it should be authorized to require and
compel such hanges as shall make them
equal reasonable and just. There can be
no good ground Of objection to this regula-
ton upon the part of the companies them
selves. Indeed, they should rather wish to
see it established as the process of its ca
forcement wonld give opport unity for such
vindicatlon OF their equitable policy respect
ing the public, Us the facts in each case wotIsd
warrant
The excessive and fictitious capitalization
! OF the property of railway corporations Is
| proper subject for legislative consideration.
| II Is VIGOROUSLY the practice of these COM
| panles, after realizing from the sale of their
| ponds money sufficient to build and equip
| their lines, to issue in addition stock to an
| equai or greater amount. representing as q
| rule no value whatever. but appropriated as
Il gratulty by the syndicate controlling the
franchises of the company. To give these
raise issues otsecurities real value dividends
III must ue earned o. the road and paid thereon.
Tie practical etfe1t of this is the perperra-
! ton of fraud upon the pubIic RaIes OF
transportation must be dXed high enough to
reailze net earnings sufficient to pay these
dividends aftet fixed oaarges are met Asa
rlle, II complaint is made that rates are hig
transportation, the COMPANY resDonds that IL
| IS charging ouly what is necessary to earn q
IalF income upon Its investment, and perhaps
refers 10 It's sworn statements made to the
board OF comm ssioners us to the amount Of
Such investment, which always includes such
| over issue of securities. This practice does
not require elaboration to expose IT'S oppres.
| sive and dishonest character but If loudly
calls for q remedy. The drafts for acts pro-
pSSAd by the commissioners, to prohibit the
| ~ fa froI1 I,IaD
or unpaid shares OF stock of railroad com.
panies," aud to IRE ulate the proceedings of
railroad companies desiring to increase their
capital stock" will protect the public against
growth Of the evil. The evident remedyas
regards existing corporations, is an adjust
ment OF their revenues and dividends upon
the asis Of u fair and liberal estimate Of the
actual cost or value OF raeir properties.
Inc incorporates into the fundamental
law OF the state or a. amendment asserting
the Iul power OF the state as to corporate
cohtrol, Is recommendation of the commits
slonerS in which cordially concur. Though
this principle is sustained b. the courts it is
not wholly admitted by the corporations. AS
an authority coming from the constitution it
would command acquiescence.
The lab0rS of the board under the law for
the regulation OF warehouses and the inspec-
ton OF grain have resulted in the inaugura-
| tion OF system of state inspection and
weighing which has worked most satlsfac-
| IOlIl5 Inc grades eStaDnSned and rules
adopted by the board for the handling of
grain have had the effect to remove the cause
for much Of the complaint that had existed
among farmers and country shippers of r-
regularitieS and abuses respecting the dis
position of their property. Minnesota grades
| OF wheat are now the recognized standard in
Eastern and European markets. and the in
| tegrlty OF our state inspection commands the
! fun confidence of the trade Undoubtedly
the adoption OF this system has added APP
| preclubiy to the market value OF our wheat,
ami resulted in realizing much more to the
producer than he would have received under
the old order of things The grades and rules
or inspection as first established proved so
satisfactory that any change in them was
generally objected 10 by farmers and dealers
ut toe commencement of the present crou
year.
Some amendments TO the law correcting
| lmperLections widening its scope and extend
ing the supervision CT the commissioners to
county elevators, are recommended by the
board.
The successful results achieved under the
railroad and warehouse laws have been SO
laTgeiJ due to the ability, industry and apd-
tude for their work OF the commissioners,
| that feel they have earned the thanks of the
people of the state. They have secured con-
ceSeionS from the railroad companies greater
than have ever been accorded to any state
railroad commission in the country, and they
have inaugurated system of state grain in
spection WHOA is being quoted and copied as
a model in some of the older states.
There are now in operation 1870 miles Of
railroad in the state, an increase of 1888 miles
in two years. Cost per mile, as reported.
$50 744,S 81. The earnings of these roads were
as follows:
1885. 1876
Gross. So, 617, 1871 $50, 1O2, 3l9 81
Net. 1866 IS 13,O65,O52 So
Taxes paid to
the state..... 611,743.55 612, 545. O3